Interview

Federated Investors: Get Ready for S&P 2500

Federated Investors' Stephen Auth sees the bears underestimating the power of the economy and the market.

Stephen Auth is very bullish and proud of it. And he's not about to change his tune, the market's big gains since March 2009 notwithstanding. Auth, 57, is chief investment officer, equities, at Federated Investors, overseeing a staff that runs about $50 billion of assets. Unlike the gloomier strategists on Wall Street, Auth maintains that the U.S. economy is poised to grow even faster, possibly at a 3.5%-to-4% clip. All of this, he adds, should help push stocks even higher. Auth expects the Standard & Poor's 500 to reach 2500 in the next 18 months to two years, about 30% above its current level. The Wall Street...